IAG Considers Selling Its 20% Stake in Air Europa
International Airlines Group (IAG), the parent company of British Airways and Iberia, is considering selling its 20% stake in Air Europa, as revealed by CEO Luis Gallego in an interview with Reuters. The decision hinges on the direction Globalia, the owner of Air Europa, takes in its ongoing talks with Air France-KLM and Lufthansa regarding the sale of part of the Spanish airline.
“This is something we will decide once Globalia makes a decision about the future of the company. We could stay, or we could exit,” Gallego stated on Thursday.
This announcement comes amid a period of increasing consolidation in the European aviation sector, where major airlines are seeking to strengthen their presence in key Southern European routes.
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IAG’s Failed Acquisition Attempt
In 2023, IAG abandoned its bid to acquire Air Europa in its entirety after failing to convince European Union competition regulators of the viability of its proposal. The lack of agreement on the conditions imposed by Brussels thwarted the deal, leaving the Spanish airline in search of new strategic partners.
TAP Portugal Remains on IAG’s Radar
Despite the uncertainty surrounding Air Europa, IAG continues to express interest in Portuguese airline TAP. The company aims to reinforce its dual-hub strategy in the Iberian Peninsula, with Madrid and Lisbon as pivotal centers.
However, TAP’s privatization could face delays due to Portugal’s upcoming elections. “If the current government remains in power, the process could be delayed by two or three months. If a new government takes office, the delay will be longer,” Gallego explained.
For IAG, the interest in TAP goes beyond acquiring a stake. “It’s not just about the percentage of shares we might hold, but also the freedom to manage the company,” the IAG CEO concluded.
The European aviation sector is undergoing accelerated consolidation, with major groups vying to strengthen their positions in strategic markets. The decisions made by Globalia, IAG, and other key players will be pivotal in shaping the future of Air Europa and the competitive landscape in Southern Europe.
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